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5.
Recent Quotes
Information Technology
Particular strengths: Strong outsourcing
expertise
JUVE, November 2009
Another extraordinary success is based on the
Indian Group led by IT partner Ulrich Bäumer
JUVE, November 2009

6.
Quo Vadis outsourcing IT service
providers in Europe?
• trend No. 1:
• The IT outsourcing service providers have discovered
Europe as an attractive market
• The reasons are the strong Europe and a saturated US
market:
• US market for outsourcing in 2006:
148 transactions (2005: 163)
• EU market for outsourcing in 2006:
157 transactions (2005: 142)
(Source: Technology Partners International, TPI Index)

9.
I. Benchmarking
• "Benchmarking is the search for industry best practices that lead to
superior performance" (Robert Camp, founder of the Benchmarking
approach)
• "A process of identifying and learning from the best practices in other
organisations" (Performance Improvement Group, "Benchmarking Code
of Conduct")
• "Process of comparing one's business processes and performance
metrics to industry bests and/or best practices from other industries.
Dimensions typically measured are quality, time and cost" (Wikipedia)

10.
I. Benchmarking
• Principles of Benchmarking:
 Identifying and learning from other companies
 Identifying the Best Practice
 Benchmarking as management tool
 Benchmarking as essential part of dynamic process of continuous
improvement and performance breakthroughs
• Benchmarking is appropriate if:
 Outsourcing volume is of a bigger scale (> 1 Mio. €)
 Outsourcing project covers various and complex services
 Term of project is lasting over several years
 Both parties intend to continue the cooperation

12.
I. Benchmarking
• Types of Benchmarking:
 Internal Benchmarking
• Benchmarking within one company and its affiliates or within one industry over
time in light of established goals
 Competitive Benchmarking
• Benchmarking of practices and processes of competitors from one business
sector or areas of activity
 Functional Benchmarking
• Benchmarking of similar practices of processes in companies from different
business sectors or areas of activity with regard to a certain services/functions
 Generic Benchmarking
• Broad benchmarking of generic practices and processes of companies from
different business sectors

13.
I. Benchmarking
• Essential elements of a contractual clause:
 What is the time and periodicity of the benchmarking?
 What is the scope/subject of the benchmarking? Who is the
comparative group?
 What agent/company will conduct the benchmarking?
 Who will choose and pay the benchmarking agent?
 How is the benchmarking process structured?
 What is the calculation of price average?
 How are the parties be bound by the benchmarking results? How will
they execute the benchmarking results?

23.
III. Lessons learned
• Make sure
• the outsourcing service provider understands what you
will do and what you expect of him (e.g. TUPE – who
will make the redundancies)
• you explain to the outsourcing service provider who
will bear the financial risks (of a benchmark, of a TUPE
risk)
• you have the right team on the project (e.g. business,
finance, tax, legal, pension experts, local HR team, etc)
• you have a workable timeline (for benchmark and exit,
but also for possible merger and HR notifications) and a
workable conflict resolution mechanism

24.
III. Lessons learned
• you can practically enforce your rights against the outsourcing
service provider
• you have the right conditions precedent and subsequent (for a
smooth exit scenario)
• you involve management and all stakeholders (including, where
applicable, works councils) at the right time
• you use the right legal entities in the right geographies
• you are prepared to take some risk and some costs
• you address the compliance issues
• you are prepared to deal with all cultural issues in an exit
scenario